5 Great Things About Home Ownership

Posted on November 4, 2011 by Gordon Jones

Homeownership can be a real joy, and now is a great time to get off the fence. Here are five great reasons to embrace the joys of home ownership…

1. Equity: When you pay rent, you never see that money again. It is lining the landlord’s pocket. Yes, buying a home may come with some hefty initial costs (downpayment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today’s market.

2. Relationships: Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbors stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.

3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it’s predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you’ll need to pay for the gutters to be cleaned, and so on.

4. Ownership: Okay, this is a given. Homeownership means you “own” your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart’s desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!

5. Great Deals: It’s a great time to buy. Interest rates are at historic lows. We’re talking 4.0 percent instead of 6.0 or higher. This means big savings for today’s buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a downpayment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.

Baby Boomers and the Real Estate Market (infographic)

Posted on November 2, 2011 by Gordon Jones

Via Coldwell Banker Blue Matter…

There are 79 million baby boomers, and this year, the oldest boomers turn 65. Their impact on the economy is enormous, so looking at the home buying trends of this group highlights interesting differences between older and younger boomers. A new survey from Coldwell Banker reveals that younger baby boomers are interested in purchasing a second home (34 percent) as compared to their older boomer counterparts (22 percent).

The infographic below represents data collected from a survey of Coldwell Banker real estate brokers and agents regarding Baby Boomer real estate trends. The findings are pretty interesting. Take a look.

Survey Reveals 5 Home Buying Myths

Posted on October 31, 2011 by Gordon Jones

Via REALTORMag…

Overall, today’s home buyers tend to be fairly knowledgeable about the real estate market, but there are still a few points of confusion in the process.

So, Zillow conducted a survey of 1,000 potential home buyers. The results revealed five main areas of confusion among today’s home buyers:

Appreciation: About 42 percent of home buyers believe home values will appreciate by 7 percent a year. Reality: Historically, home values in a normal market appreciate by 2 to 5 percent in a year.

Mortgage insurance: 41 percent of buyers think they will have to purchase private mortgage insurance, regardless of the amount of their down-payment. Reality: Buyers only need to purchase PMI if their down-payment is less than 20 percent of the home’s purchase price.

Appraisals: 56 percent of the buyers said the purpose of the appraisal was to determine if a home was in good condition. Reality: That’s the purpose of a home inspection; an appraisal estimates fair market value.

Home owner’s insurance: 37 percent of home buyers said that buying home owner’s insurance is optional. Reality: Lenders require home buyers to purchase homeowner’s insurance.

Ownership: 47 percent of home buyers said a prospective buyer owns a home after the purchase contract is signed. Reality: The purchase and sales agreement is the beginning of the closing phase, but it can be a long process until they finally take ownership.

Outer Banks Real Estate Market Report- Q3 2011

Posted on October 28, 2011 by Gordon Jones

The following is a comparison of the first 9 months of 2011 to the first 9 months of 2010. Overall sales year to date have exhibited little change; however, the sale of listings categorized as Potential Short Sales were up significantly (32%) while the sale of listings categorized as bank owned were down (15%). Commercial sales have also picked up (42%).

Outer Banks Market Report Q3 2011- Page 1

Finding a Good Real Estate Agent

Posted on October 26, 2011 by Gordon Jones

Coldwell Banker explains the importance of finding a good real estate agent:

Because of the impact it can have on the rest of the process, locating a good real estate agent is among the most important steps when planning a home transaction. Real estate agents can help home buyers determine their criteria for suitable properties, find potential homes in the right area and figure out which meet their needs. They can assist with negotiations from either side, and help home sellers figure out how to market and prepare their properties.

Not only can they improve the results of a home sale or purchase, but they can significantly reduce the amount of time needed to achieve positive results. That way, home buyers and sellers can close deals and progress to the rest of their lives.

All about agents

Agents may work exclusively with home buyers, exclusively with home sellers, or provide services to both. When evaluating them, people should keep in mind that surface factors, such as their resume and commission, do not tell the whole story. MSN Real Estate suggests home sellers should ask an agent how he or she thinks their home can be successfully marketed. Home buyers, on the other hand, should ensure their advisor understands what they are looking for.

Another question to ask is how much the agent knows about the area the home seller is in, or the home buyer wants to move to. Professionals may specialize in particular areas and neighborhoods, affording them the deepest understanding of the market. They may understand not only the general lifestyle of the area’s residents, but also specifics like transportation and income or education levels.

How an agent helps

According to Investopedia, a good agent is an effective liaison between home buyers and home sellers. Whichever side they represent in a given transaction, real estate agents understand the negotiating tactics and positions. They can also help home buyers and sellers alike prepare for sometimes-forgotten aspects of the process, such as the closing costs. Having a professional in the loop can keep communications between home sellers and buyers from becoming negative in a personal way, if, for example, the prospective buyer dislikes some characteristic of the home.

While the exact functions a real estate agent can perform vary somewhat between states, they can be a significant help when it is time to write contracts. Home purchase contracts may include conditions relating to financing or repairs, among other provisions. An agent can spot many problems in advance, before documents become official and binding.

Preparing to Buy an Investment Property

Posted on October 24, 2011 by Gordon Jones

Via ColdwellBanker.com… It’s hard not to hear the rumblings. Experts and talking heads repeatedly say real estate can be a lucrative investment, especially for home buyers who buy at the right price and secure affordable financing. However, for someone who has never done it before, real estate investment can be a tricky topic. Bankrate.com offers a few tips for homeowners who think they are ready to become a real estate investor.

Determine goals

The term “real estate investor” covers a wide breadth of roles. There are people who want to be a landlord and dote over their own property’s day-to-day care and management. Others simply want to purchase the property and let someone else handle the management. Still others may be interested in fixing up run down properties and re-selling them, or starting from scratch, buying undeveloped land and building something on it. Bankrate.com reports the first-time investor may want to stick with residential investment until they become more comfortable with the concept.

Don’t be short on funds

Home buyers may want to speak to a financial advisor to see if they actually have the capital needed to invest. Whether they’re becoming a landlord or commercial investor, a home buyer needs substantial cash reserves to cover periods of time when they won’t have tenants or the market is slow, according to Bankrate.com.

As always, location, location, location

Just as they would if they were buying a home to live in, real estate investors need to focus on location. High-population areas are ideal for the home buyer-turned-landlord, since they attract renters looking for easy access to work, retail locations and public services. An ideal investment opportunity would be situated between shopping centers, schools and public transit, Bankrate.com reports. Such a property would also attract future buyers if an investor decides to sell the property down the line.

Look for an experienced real estate agent

Bankrate.com reports a home buyer considering property investment should partner with a real estate agent who knows the local investment climate and can find them a property that will bear substantial returns over time. Additionally, the investor should plan to keep a strong relationship with that real estate agent, since they could help them re-sell the property and find a new investment opportunity in the future.

Coldwell Banker Seaside Realty Names Top Agents in September

Posted on October 21, 2011 by Gordon Jones

Coldwell Banker Seaside Realty names Brad Beacham, Terri Faison and Dianne Harris “Agents of the Month” in the month of September.

Brad Beacham is “Agent of the Month” for the Kitty Hawk office. Brad has been a consistent top producer and last year he was in the top 2% of all real estate agents in the area. Brad was also featured in Realtor Magazine’s 30 Under 30 in 2005. Brad lives in Kitty Hawk with his wife Rachel and children Emily and Seth.

Brad services all real estate in Dare and Currituck counties while striving to give his clients the absolute best service and representation possible. Brad can be reached directly at 252.255.6458 or via e-mail at brad@bradbeacham.com.

Terri Faison is “Agent of the Month” for the Elizabeth City office. Terri was the top producing agent in 2010. A lifelong resident of Camden County, Terri prides herself on “being professional, ethical & courteous”. She is very active in her community and has been the Chair of the Camden County Board of Education.

Terri lives in Shiloh with her husband & children and can be reached at tfaison@seasiderealty.com or 252.202.9039.

Dianne Harris is “Listing Agent of the Month” for the Elizabeth City office. Dianne is a lifelong resident of Elizabeth City and has 27 years in sales and customer service related fields. She’s married with 2 grown sons & 4 grandchildren. Dianne is a consistent top producer and has received many Listing Agent of the Month awards, as well as Listing Agent of the Year 2010.

She likes to share her hometown knowledge so call her at 252.339.7334 or email at Dianne@seasiderealty.com.

Founded in Kitty Hawk, NC in 1990, Coldwell Banker Seaside Realty is a dynamic full service real estate company, servicing the entire Albemarle region. More than 50 licensed agents provide both residential and commercial buying/selling assistance in Northeast North Carolina. Offices located in Kitty Hawk and Elizabeth City, NC. More information can be found on the Coldwell Banker Seaside Realty website at www.ColdwellBankerOBX.com.

Outer Banks Real Estate: September 2011 Update

Posted on October 19, 2011 by Gordon Jones

It was a Spectacular September at Coldwell Banker Seaside Realty. Here are a few highlights from the month:

We had a 113% increase over last September!
23 closings! The top 10 firms for September had an average of 15 closings. We had 23, which was the 2^nd highest in the MLS!
2 million plus closings!
Average sale increased to $326,820
We were #3 in the MLS for the month!
One of our oldest listings sold this month – over 3 years on the market!

This was one of the strongest 3rd quarters we have had in quite some time.

Congratulations to our Agents of the Month:

Brad Beacham, Agent of the Month for Kitty Hawk
Terri Faison, Agent of the Month for Elizabeth City
Dianne Harris, Listing Agent of the Month for Elizabeth City

The Joys of Home Ownership

Posted on October 18, 2011 by Gordon Jones

People enter the world of home ownership for a number of reasons, when the market is right, as a financial move or simply for a change in lifestyle needs. A recent blog posted by RealtyTimes shows a much more sentimental side to home ownership, the warm and fuzzy side that is, in fact, what draws many of us to a home…

“Owning a home allows you to put down roots, both figuratively and literally. On one hand you become part of a neighborhood and community. When you rent, neighbors come and go as quickly as leases renew. Home owners, however, tend to stay put longer.

What does this mean for you? You can develop, many times, lifelong relationships. This also means your home will see you through many of life’s important milestones.

It makes sense. Many people enter the realm of home ownership as young couples looking to build a nest. They plan on starting their own family and need room to expand and grow. These family homes will see many firsts and will be the container of countless memories. Additionally, home ownership gives families more room to entertain and this means extended family will also share in building memories.

It’s not just young families, though, that seek home ownership. Families with teenagers seek larger homes to room their growing brood. Retiring adults may wish to start a new phase and new memories, seeking out warmer climates or smaller, more manageable homes.

These little moments are what life is all about. Memories from Christmas mornings and summer vacations will fill minds for years to come.

On the other hand you literally can put down roots by planting trees and shrubs! Renters are rarely afforded the luxury of gardening. In fact, digging up the landlord’s yard is frowned upon. As a home owner you are able to create your own green oasis, including trees that will mature alongside your children and gardens that will feed your hungry pack.

There is a certain pride that comes with homeownership. This little piece of property and land is yours. There’s no one that can evict you or take it away. This security allows people to form deep attachments to both the land and home.

This pride of ownership spurs many owners to make improvements and additions, both to keep the home in working order and to make it more comfortable and usable, which in turns improves neighborhood values and overall curb appeal.

Why do people buy? They may be initially motivated by changes in circumstance, such as a new job or a new family, but they buy based on emotional responses. People want a house that can become their home, where they’ll fill it with good times and memories. Be sure to remember this sentimental side of home ownership the next time you read about stocks, bonds, and housing woes.”

Wall Street Journal & Forbes say it’s Time to Buy a Home

Posted on October 17, 2011 by Gordon Jones

Via The KCM Blog…

The Wall Street Journal

Last week, in an article entitled It’s Time to Buy That House, the WSJ told their subscribers:

“It’s an excellent time to buy a house, either to live in for the long term or for investment income…Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”

In an article two weeks ago, MarketWatch.com (the on-line blog for WSJ) told their readers:

“Now could be the best time in history to buy a home.”

Forbes.com

In a report to their subscribers, Capital Economics reported that:

“The previous declines in house prices and the more recent drop in mortgage rates to record lows have created an unusual situation in which the median monthly mortgage payment is more or less the same as the median rental payment.”

Why is this important? Last week, Forbes explained to their readers:

“If rents simply kept up with inflation at a 3.2% annual increase, a $1,500 rent payment would cost that renter nearly $900,000 over the next 30 years. The same $1,500 payment made to their mortgage would be only $540,000 (because the payments don’t increase with inflation).”

They went on to explain the advantages of homeownership during retirement:

“Even with a dismal 1% growth rate over 30 years, a $300,000 property would appreciate well over $100,000 giving the homeowner an additional nest egg for retirement…

At a time when retirement is becoming much more challenging, an extra $400,000 (or likely more) can make a major difference not to mention the impact of NOT having to pay a mortgage. How much less would you have to save for retirement if you didn’t pay the mortgage?”